Toyota production system


Published on

Published in: Automotive, Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Toyota production system

  1. 1. Presented By: Abhishekh Kumar JL13FS04 Paritosh kumar Singh JL13FS35 Romanshu Varshney JL13FS64 Rohit Kishore JL13FS47 Rajneesh Kumar JL13FS44 Prakhar Pandey JL13FS39 TAIICHI OHNO AND TOYOTA PRODUCTION SYSTEM
  2. 2. TAIICHI OHNO Ohno was born in 1912 in Manachuria, China. After graduating from the Nagoya Technical High school, he joined Toyoda Automatic Loom Works in 1932 and moved on to automotive business in 1943 as an assembly manager. By 1975, Ohno was made a vise president. He retired the same year, bur remained associated with Toyota till 1982. Ohno died in 1990 at Toyota City.
  3. 3. TOYOTA • Toyota history goes back to 1897, when Sakichi oyoda diversified into the textile machinery business from the traditional family business of carpentry. Skichi’s son Kiichiro In early 1930s convinced his father to launch a automobile business. The first prototype was developed in 1935. • In 1936 sakichi sold the patent rights of his automatic loom to a company in England. Kiichiro was made the managing director of the new venture. The new company was named Toyota. • In 1950 after a major strike by the labor unions, kichiiro was forced to step down and his cousin Eiji Toyoda, who was also a engineer from Tokyo university was made managing director. • Toyota first export to the US was the Toyota crown and then the corolla. • Toyota brought TPS to the US in 1980s, when it set up a joint venture with GM called New United Motor Manufacturing Inc., (NUMMI). • In 1983, the company’s name was changed to Toyota Motor Corporation. In 1988, Toyota opened its own plant in Georgetown, Kentucky.
  4. 4. CONTD…. • Tatsuro Toyoda then took over as the company’s president in 1992. • In 1999, Okuda replaced chairman Shoichiro Toyoda and Fujio ho became the president of the company. In the same year , Toyota listed its shares on both the the New York and London stock exchanges. By the early 2000s , Toyota had become one of the top manufacturers of cars in the world and was poised to become the biggest automobile company. • Toyota Production System (TPS) • The TPS involved a flexible batch process, with multipurpose capital equipment and cross trained workers supplied by JIT inventory. It aimed at eliminating wastage and lowering capital expenses to increase productivity through a process of continuous improvement or kaigen. It focused on empowerment of workers and on developing strong relations with suppliers.
  5. 5. TOYOTA PRODUCTION SYSTEM (TPS) • This whole case is about Toyota’s efficient production system how Toyota gains comparative advantage over other car manufacturers . • TPS consisted of two aspects- the “Hard” or the technical part and the “Soft” or people related part. • The hard aspect focused on the manufacturing systems like JIT and Kaban and soft part related to respect for humans, which included workers and suppliers. • TPS tried to increase the efficiency of production by eliminating waste and lowering costs.
  6. 6. JUST IN TIME • JIT was the foundation of TPS. Its aim was to eliminate waste of all kinds by producing or supplying materials only when they were needed and not earlier. • The principle behind JIT was to produce “only necessary products, at the necessary time and in necessary quantity”, to keep the stock at minimum. • Adopting JIT allowed Toyota to do away with inventory and stores, thereby cutting out the corresponding costs. • JIT was based on reverse reasoning, and the working of the production line started at the point of customer demand.
  7. 7. KANBAN • Kanban was the cornerstone of JIT and helped Toyota achieve a high level of outsourcing. • In this system process needing components wrote the details about the kind of units needed and the quantity on a card called the KANBAN. A worker then took this card to the preceding process and withdrew the amount required. • Kanban had evolved into sophisticated inventory management tool that ensured production in the required quantities at the right time in all manufacturing processes within a factory.
  8. 8. KAIZEN • Kaizen meant continuous improvement and was another element of TPS. Kaizen required all employees to participate in eliminating all activities that were classified as waste from the production system. • Kaizen involved a great of observations of workers and their work processes. • The focus of Kaizen was not just to identify a problem and develop a solution, but to understand the problem and all its alternatives thoroughly. • Considering the persuasive nature of Kaizen activities, the support and commitment of the management was an important prerequisite for their successful implementation.
  9. 9. CONTD…. • An important element in Kaizen was Poka-yoke involved the creation of processes that moved smoothly from step to step, without giving room for errors to creep in.
  10. 10. THE HUMAN ELEMENT AND JIDOKA The human element played an important role in the TPS. Analysts said that the organizations and structure of the human resource function , in addition to the corporate culture, played a very important role in Toyota's success. The main considerations in TPS were : • Elimination of wasteful movement by the workers • Consideration for workers safety; and • Self display of workers capabilities by entrusting them with greater responsibility and authority The TPS emphasized flexibility and team work. Most of the workers were cross trained and could be shifted between
  11. 11. CONTD….. Different production lines. Jidoka was manifestation of Toyota’s commitment towards empowerment. This philosophy empowered workers to stop the equipment or operations in a line whenever an abnormal or defective condition arose in the line. This displayed the trust that Toyota placed in the capability of its workers and was also meant to promote worker participation. The Jidoka system helped direct attention to the problem as soon as it occurred, thus preventing further complications. This helped Toyota achieve a high level of quality.
  12. 12. LEAN MANUFACTURING • John Krafcik a researcher first coined the term “Lean Manufacturing” in the late 1980. • The concept was based on the Toyota’s Production System, which manufactured better quality products with a lower defect rate and at a great speed than its competitors. • Lean manufacturing is ‘lean’ because it uses less of everything- half the manufacturing space, half the investment in tools, half the engineering hours, and half the time to produce goods that have fewer defects. • It combines teams of multi skilled workers at all levels of the organization and uses highly flexible and increasingly automated machines to produce volumes of product of enormous variety.
  13. 13. BENEFITS AND CHALLENGES Analysts said that the TPS conferred a great amount of flexibility and productivity enhancing capabilities on toyota. By the early 2000s, toyota had the capability to manufacture a car, from raw material to final assembly, in five days. This gave the company a considerable advantage over competitors. Concepts like the kaizen and jidoka ensured that high levels of quality were maintained, making Toyota one of the best car companies in the world. In quality survey conducted in 2000, toyota captured the top position in nine out of thirteen vehicle segment and won the Top three plant awards.
  14. 14. •In the fiscal year 2004 the company’s revenue and operating income were US$ 163 billion and US$ 15 billion. •It was double the combined net earnings of automobiles majors like the GM, Ford and Honda. • The foundation of toyota performance was because of its much analyzed and emukated manufacturing system. RICHEST AUTOMOBILE COMPANY
  15. 15. THANK YOU